Are there similarities between Fairfax and Telstra? Think back to 2009/2010 and all the headlines and sentiment towards Telstra were negative. It was wrestling with the Government around the NBN, there was stiff pricing competition from Vodafone, Future Fund was selling and many analysts questioned the 28c dividend that underpinned the retail shareholder base. Yet as the dominant player in telecommunications and with sound management Telstra has emerged as the business best positioned to benefit from new mobile and telecommunications trends. Could the same be said for Fairfax? Yes it has been under performing for years and still faces fierce competition for eyeballs. However, you can also mount an argument that says once the business adjusts (which it has been working hard to do) it is the best placed domestically to benefit from the new era of news and communications.The surge in digital subscriber numbers are looking promising (VIEW LINK)
staggering numbers - Berkshire hathaway bought a number of newspapers last year...
Great thought - and coming off a low base (share price wise)
It is definitely a bit of a punt because Fairfax face really stiff headwinds and barriers to entry are far lower in the online news department. However, who else is investing the way they are in online news? They have an audience and a brand.... It is just taking some time for them to turn the ship. Just a thought